XAU/USD, H4
Let’s look at the four-hour chart. Tenkan-sen line is below Kijun-sen, the red line is turning upwards and can soon cross the flat blue line, forming a signal to buy. Confirmative Chinkou Span line is crossing the price chart from below; current Kumo-cloud is descending. The pair has overcome Tenkan-sen and Kijun-sen lines, the latter becomes a support level at 1160.88. The next obstacle for the price on its way up will the lower border of the cloud (1167.78).
XAU/USD, D1
On the daily chart Tenkan-sen line is below Kijun-sen, they are both horizontal. Confirmative Chinkou Span line is still below the price chart and current cloud is still descending. After long fall the pair is being corrected to the resistance level of Tenkan-sen line (1167.58). One of the previous minimums of Chinkou Span line is expected to be a support level at 1149.00.
Key levels
Support levels: 1160.88, 1149.00.
Resistance levels: 1167.58, 1167.78.
Trading tips
On the four-hour chart the pair starts to turn upwards, however there is still no strong signal to buy and daily chart shows us a downward trend. Short-term buy positions can be opened at current price with take-profits at 1167.58 and stop-losses at 1160.88. The scenario should be cancelled as soon as the price goes under Tenkan-sen line.
